Judge

• LL. A. Pattillo

Counsel

• Respondent
  CCaitlin McIntyre
• Applicant
  PPaul Steep
• Applicant
  JJamey Gage
• Respondent
  JJustin Manoryk
• Respondent
  MMichael Wright
• Respondent
  AAndrea Laing
• Respondent
  MMichael Robb
• Respondent
  RRyan Morris
• Respondent
  LLinc Rogers
• Applicant
  TTrevor Courtis
• Respondent
  AAlex Dirnson

Parties

• Elmcliffe Investments Inc.applicant
• CTI Holdings (Osoyoos) Inc.applicant
• KPMG LLPrespondent
• CannTrust Holdings Inc.applicant
• CannTrust Inc.applicant
• Zola Finance Holdings Ltd.respondent
• Igor Gimelshteinrespondent

Areas of Law

Fact Patterns

Financial Outcomes

Damages claimed

$500,000,000

Settlement

$50,000,000

Issues

1. Whether the Allocation and Distribution Scheme's date for the start of the Niagara facility misrepresentations is fair and reasonable.→ upheld — the compensation formula was developed on a rational basis and is reasonable
2. Whether KPMG was improperly excluded from voting at the Creditors' Meetings.→ dismissed — KPMG's claim was derivative and subject to the rule against double proof
3. Whether the assignment of the Applicants' claim for auditor's negligence against KPMG to the Trust is fair and reasonable.→ dismissed — the removal of the bar for all Assigned Claims is neither fair nor reasonable
4. Whether the Bar Order terms, specifically the Judgment Reduction Provision, are fair and reasonable.→ dismissed — the provision fails to restrict the Securities Claimants' claims against non-settling defendants to several liability